OGIG, an actively managed ETF which has a portfolio stuffed with Quentinvest 3G shares, is poised to give a buy signal. The shares have been in the buying zone since March 2022 as marked on the chart and will almost certainly give a Coppock buy signal in February when the indicator turns higher from a negative position. This buy signal for Storey would be confirmed by a rise above $33.05, the highest level reached between the two low points.
When it comes to buying the shares this is very much a case of if not now when. These shares have never previously given a Coppock buy signal and it will most likely be a long time before the next one. OGIG is all about technology, mostly US but also a good exposure to Chinese techs. The top 10 holdings are shown below.
These are all what I would call very sexy shares, great technology, a great history of growth, exciting management and ambitious plans. I can see OGIG shares doing very well in the next bull market.
Strategy
In the past I used to have two separate alerting services, Quentinvest for Shares and Quentinvest for ETFs. These have been merged and I am glad because ETFs are becoming ever more central to my portfolio strategy.
Why hold loads of individual shares when you can capture so much of the excitement and achieve instant diversification by buying ETFs. They are also great for my buy zone strategy because the constant rebalancing means they should reflect the momentum in the market and never go bust.
OGIG is almost certainly going to have a Coppock buy signal when the January figures are in. It almost made it for December and it would take Armageddon to stop a buy signal in February. I would remind subscribers that shares with a rising Coppock have a strong history of performing well.
OGIG will also make a double bottom on the Eustace Storey on buy volume (OBV) system because although the second low point in November 2022 was lower than the first low in May the volume had dropped away sharply. The implication is that the selling pressure on the second low point was much less, hence the double bottom and the potential for a price reversal.
We can focus for individual shares on the potential monsters, what I call the 10+ shares. I will have more to say about those in future issues.
P.S. The last alert, ‘ETFs and the buy zone; Chinese health care’, was published twice. This was because I made a mistake and turned it into a draft and then had to publish it again.
